REUTERS: Cotton prices up over 2% on supply worries

REUTERS: Cotton prices up over 2% on supply worries

Sept 25 (Reuters) -ICE cotton futures rose more than 2% on Monday, snapping a three-day losing streak, supported by concerns over supply in key growing areas in the United States.

* The most-active December cotton contract CTZ3 rose 1.87 cent, or 2.2%, to 87.78 cents per lb at 12:52 p.m. EDT (1652 GMT).

* "There is a feeling that we will see even lower (U.S.)crop number in the coming WASDE report. It is a supply driven market, not demand driven," said Keith Brown, principal at cotton broker Keith Brown and Co, in Georgia.

* Limiting gains in the natural fiber, the dollar ticked higher. Stronger dollar makes cotton more expensive for buyers holding other currencies. USD/
* The U.S. Department of Agriculture's (USDA) export sales report last week showed net sales of 105,800 running bales of cotton for 2023/2024, up 67% from the prior four-week average. The report showed exports of 150,700 running bales, primarily to China. EXP/COT

* Speculators cut net long position in cotton by 1,787 contracts to 32,988 in week to September 19, data from the Commodity Futures Trading Commission (CFTC) showed on Friday.

* Elsewhere in the grain market, Chicago wheat futures rose, while corn and soybean fell as decent U.S. harvest weather continued. GRA/

Reporting by Sherin Elizabeth Varghese in Bengaluru


Source: Reuters
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